The Afghan divide

Thursday 10 January 2013

Kabul, Jan 10 : How should we measure success in Afghanistan? It's a crucial question, but there isn't much agreement on an answer.

In mid-January, this newspaper ran a story on the latest National Intelligence Estimate on Afghanistan, a classified assessment drafted by analysts at more than a dozen U.S. intelligence agencies. According to The Times, the report "warns that security gains from an increase in troops have been undercut by pervasive corruption, incompetent governance and Taliban fighters operating from neighboring Pakistan."

Those with direct responsibility for the war — top military commanders and the U.S. ambassador to Kabul — reportedly contested the report's findings in a written dissent. The dispute highlights an ongoing struggle to shape U.S. perceptions on Afghanistan.

Analysts like using numbers to bolster their arguments because numbers seem hard and fast. But they don't always agree. Last summer, for example, the NATO command in Kabul announced that for the first time since 2006, insurgent attacks were down compared with the previous year. But United Nations agencies and humanitarian organizations were reporting large upticks in violence and its effect on civilians.

Numbers draw their significance from what they count. In this case, the military tallied attacks that insurgents initiated where international troops were present, including improvised bombs that exploded but not ones that had been defused.

Humanitarian groups, by contrast, were tabulating all violence suffered by civilians, no matter who the perpetrator, including kidnappings and shootings at the hands of the militias that the U.S. militaryhas armed to fight the Taliban.

Afghans themselves are attuned to something less tangible: the likelihood of danger. Take last September's attack by a few militants shooting rocket-launched grenades from a tower in central Kabul, which shut downthe U.S. Embassyand nearby NATO headquarters for 20 hours.

Foreign officials might record such an incident as a single attack. But to Kabul residents, it sent an overpowering message that their city was unsafe, that the terrorists could do what they wanted.

Underlying the current dispute over the intelligence estimate is another, deeper divide. The assessment reportedly acknowledges the hard work by Afghan and foreign troops in driving the Taliban out of many of its strongholds. That success is clearly visible in Kandahar, where I have lived for most of the last decade. But its significance is less clear.

"Yes, we've made gains against the Taliban around Kandahar," a minister and former Kandahar governor told me recently. "But it takes 18,000 men for a single district. We can't sustain that."

And there have been other costs. As troops moved into rural districts the Taliban had held, they built dirt roads right through farmers' vineyards and orchards. I saw the results when I went to visit a friend's family land. Debris had been shoved into an irrigation channel that once watered the whole village, razor wire had been looped across a road, and buildings where families dry their grapes to make prized raisins had been destroyed.

There were good tactical reasons for inflicting such damage. Many of the buildings had been booby-trapped by the retreating Taliban, or they obstructed the troops' lines of sight. But the local economy, already one of the most threadbare on Earth, has been badly hurt. Compensation money was paid out, but still, success against the Taliban came at great cost to residents.

They are left with the question: What now? If their grapevines or fruit trees dry out, what should they plant? If insurgents offer poppy seeds, should they accept? And what about the Afghan soldiers who stole the furniture out of the blown-up buildings? Villagers can't take them to court because the judicial system is deeply corrupt. So who can give them recourse? A sense of justice? Maybe the Taliban.

If, on the other hand, the Taliban does move back in, or if it is given power in some deal negotiated by the United States and an Afghan government most of its citizens don't view as legitimate, how will the many Afghans who don't wish to be subjected to Taliban rule react?

The Afghan security forces the United States has been working so hard to build up are largely commanded by viscerally anti-Taliban groups. Is U.S. policy driving Afghanistan back toward civil war?

It is this potential for systemic collapse that the intelligence estimate reportedly highlights, to the dismay of the dissenting officials.

But even if withdrawing on the current schedule brings about Afghanistan'simplosion, that might still be the right thing to do. If the U.S. government chooses not to address the two fundamental political and diplomatic challenges its intelligence estimate is said to highlight — corrupt government and Pakistan's support for extremist violence — then why waste more blood and treasure? But President Obama must make that decision in full cognizance of the dangers, so he can plan for them and try to mitigate some of them. He needs more divergent views, not fewer.

The aggressive efforts by some to spin perceptions of Afghanistan have grown unseemly as well as dangerous. I've seen dissent disappear from interagency documents. I've heard officials tell public affairs officers to pressure reporters about their stories.

Though I doubt the nation's intelligence community can be easily cowed, even by three generals and an ambassador, the impulse to interfere is wrong. Writing problems out of documents won't make them go away. Obama deserves a clear exposition of competing assessments of national security issues. Then it's for him to hash out the differences in internal debate.

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How Iran controls Afghanistan

Kabul, Jan 10 : Afghanistan has suffered from foreign meddling since its inception. But while Pakistan’s role has been widely discussed -- most Afghans will point to concrete examples -- Iran’s involvement is more subtle.

Iranian influence is all encompassing--the Islamic government funds Afghan Shiite sects and politicians, has invested in building roads and providing fuel and transport, and is fighting hard against the Afghan opium trade that supplies millions of addicts. But Iran’s lasting power on Afghanistan is cultural as well as political, broadcasting state radio and television programs inside Afghanistan.

Yet the country’s biggest cultural influence is not imposed by the Iranian government.

The more than one million repatriating Afghan refugees from Iran – tens of thousands have been deported –bring the dialect, food, music, and clothes particular to Iran.

Some of the Afghans repatriates are migrant workers, similar to Mexicans in the U.S., some are construction workers who became addicted to drugs in Iran, others were able to get an education and acquire job skills, and most have lived there for over three decades.

Yet Iran will not grant them legal status; they do not have a right to a higher education, to own property, or to work. Most voluntarily return to Afghanistan because there are more opportunities in their home country. These Afghans are changing Afghanistan’s identity to be more Iranian – for better or worse.

My family escaped the Soviet invasion in 1982 and settled in the U.S.

I first returned to Afghanistan in 2000 when the Taliban reigned, but it was after the group’s ouster that I witnessed the cultural changes brought on by immigration.

I was traveling through Afghanistan researching the drug trade for my book "Opium Nation" from 2002 to 2007, and my first confrontation with Iran’s cultural impact was language.

Iran and Afghanistan both speak Farsi, but the Afghan dialect is called “Dari.” I’m fluent in Dari but I no longer understood what many of the families in my hometown, Herat are saying.

Common words, idioms, and even Iran’s use of French terms have invaded Afghan speech. The Herati folk songs I recalled hearing in shops as a child were replaced by Iranian pop produced in Los Angeles. The young Afghan activists and artists read Iranian websites and books.

These changes have given rise to tension between the Afghans who never left home and the Afghan returnees.

The skilled repatriates are resented for getting better jobs with aid companies and the Afghan government.

Conservatives view the Afghan women who grew up in Iran with disdain because they appear more liberal and courageous--they sing on TV, they’re news broadcasters, business owners, and government workers. They voice their opinions loudly in a male dominated country.

The Hazara ethnic group in Afghanistan who were historically the poorest of minorities return richer, more literate, and united. They have made unprecedented advances in Afghanistan, including in the arts and in the government.

These returnees are called “Afghan-e badal,” or counterfeit Afghans. Few of them have political connections to Iran, but their time living in the Islamic Republic taints themin the eyes of the Afghans who didn’t leave as culturally inauthentic and politically suspect.

Several Afghans at NGOs I met told me that their returnee colleagues had clandestine connections to Iran. When I asked for tangible evidence, one of them told me. “I just know by that accent they use. They’re sellouts.”

While I’m not fully comfortable with this cultural invasion, I understand that Iran advanced while Afghanistan struggled to survive in the last three decades.

Culture is fluid and both countries share a common history. After all, my own husband is one of these Afghan returnees and he’s a true patriot.

Repatriating Afghans have enough of a hard time readjusting to their battered country – ostracizing them is simply cruel.

However, Afghan bitterness toward the Iranian government is justifiable. The Islamic Republic backs religious divisions inside Afghanistan, using Afghan Shiites as pawns.

Shiite Afghans, who come from other ethnic groups as well, are encouraged to watch Iranian clerics give fiery speeches against Sunni Afghans. Iran built the road from Herat City to its border, one of the finest rebuilt highways, but the signs alongside the road bear Koranic verses picked by Iran‘s government.

My homeland is geographically determined as a buffer zone where empires and nations have fought their battles using Afghans as their pawns.

Extremist Sunni groups cross the Pakistani border to kill Afghan Shiite children and women. The carnage last month in Kabul at a Shiite mosque killed eighty people and was a new height in religious sectarian violence for Afghanistan. It won’t be long before Iran recruits a group to bomb a Sunni mosque.

Iran and Pakistan were not such deadly influences on Afghanistan before the revolutions and wars inside these countries.

A harmonious cultural exchange was common among these neighbors. Pakistani couples took their honeymoon in Kabul while Iranian singers traveled to give concerts in Kabul in the 1960s.

Before the Soviet invasion, my mother, a Sunni, joined her Shiite friends to commemorate the death of Prophet Mohammed’s grandsons during the month of Muharram.

One of my uncles married a Shiite woman, and while throughout history tensions existed between the two sects, the result was not as violent.

I can take pop music and the Iranian Farsi drawl, but Iran’s sponsorship of sectarian violence must be stopped -- by the U.S. and other foreign powers invested in Afghanistan -- but mostly, by Afghans themselves who must unite to stand up to their neighbors.

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A Taliban ‘rope-a-dope’ strategy?

Kabul, Jan 10 : The on-again, off-again effort by the Obama administration to begin preliminary peace talks with the Taliban is still struggling to get off the ground.

The first move focuses on a statement by the Taliban against international terrorism and in support of a peace process and the opening of a Taliban office in Qatar. For this the Taliban have called for the release of its prisoners held at Guantánamo Bay.

To garner support for this initiative, the administration's special envoy for Afghanistan and Pakistan, Ambassador Marc Grossman, has been traveling in the region, including meeting with Afghan President Hamid Karzai, to make sure he is on board. Afghan officials have expressed concern about the possibility of a ‘secret deal' being struck between the Taliban and the U.S.

But that would be unlikely, given the administration's oft-repeated public assurance that it supports an "Afghan-led and Afghan-owned" reconciliation process. In fact, what is more likely than a ‘secret deal' is no deal at all.

Earlier high-level efforts by the U.S. government to have ‘peace talks' with the Taliban may be instructive. As Winston Churchill said: "The further back you look, the farther forward you can see."

The Taliban history of negotiating with its opponents reveals little reason for optimism. Striking a deal with its sworn enemies does not appear to be in the Taliban's DNA. Instead, past experience suggests it has adopted the negotiating equivalent of the "rope-a-dope' strategy in boxing -- agreeing to enter the ring, playing for time, evading and avoiding committing itself, letting the opponent wear himself out, then hitting back hard as it had intended to do all the time.

In April 1998, then U.S. Ambassador to the United Nations Bill Richardson traveled to Afghanistan to meet with the Taliban and the Northern Alliance, in order to bring them to the table to discuss the possibilities for peace. He also tried to persuade the Taliban either to expel Osama bin Laden or extradite him to the U.S. for his complicity in the 1993 World Trade Center bombing.

In his memoir Between Worlds, Richardson described the outcome: "Flying back to Pakistan that night, I thought, Well, this was a good day's work. Peace talks would get started later in the month, and if they went well, we might get bin Laden after all. But it wasn't to be. The agreement held for a while, but we quickly learned that the Taliban had no intention of making peace with the Northern Alliance. By early May, a belated spring offensive had begun and the two sides were at it again."

In February 1999 there was another attempt at direct talks with the Taliban. After the bin Laden-directed bombings of the American embassies in Kenya and Tanzania, I traveled to Islamabad with the State Department's coordinator for counter-terrorism, Michael Sheehan, to meet with Mullah Abdul Jalil, a close adviser to Taliban leader Mullah Mohammed Omar (from 1997-2001 I attended some 20 meetings with Taliban officials). The U.S. government had repeatedly demanded that the Taliban stop giving safe haven to terrorists. Now we told Jalil that the U.S. would hold the Taliban itself directly responsible for bin Laden's actions, and respond accordingly.

Mullah Jalil said that bin Laden was becoming a burden on Afghanistan, but that he was under the Taliban's control and he could not possibly be operating a worldwide network as we suggested. Later efforts were made to provide the Taliban with more information about the U.S. case against bin Laden, but they never responded.

Subsequently the UN Security Council tried to persuade the Taliban to turn over bin Laden. Two resolutions were adopted, and sanctions were imposed, but, again, the Taliban defied these calls by the international community. On a scale of one to ten on good faith negotiations, the Taliban proved to be a zero.

Are the Taliban likely to be any more accommodating today, specifically the Quetta Shura faction still led by Mullah Omar? Recent statements issued by the "Islamic Emirate of Afghanistan" on January 3 and January 12 suggest not. That was the name the Taliban gave Afghanistan during its rule from 1996 to 2001. The international community never recognized it. The Taliban still stick to it.

Taken together, these statements lay out the Taliban's ‘going in' position for peace talks, including the departure of all U.S. and foreign forces and a continuation of their "jihad" until that goal is accomplished. Also, the movement remains at least in rhetoric opposed to negotiations with the Karzai government (referred to as "the stooge Kabul administration") as well as acceptance of the Afghan constitution.

Administration officials say that while they are under no illusion about the chances of success in opening direct talks with the Taliban, they are convinced that a political settlement is the only solution to the war. But they also need to be convinced that the Taliban is serious about a future for Afghanistan that is not a return to the days of the "Islamic Emirate."

In this regard, several probing questions need to be asked of Taliban representatives during what Secretary of State Hillary Clinton says is "still in the preliminary stages of testing whether [talks] can be successful":

Are they willing to support and abide by internationally acceptable mechanisms of legitimization, like elections, referendums or tribal consensus?

During the years of repressive Taliban rule, none of these questions could have been answered in the affirmative. Can they be today?

And, more importantly, what concrete steps can be taken by the Taliban to demonstrate that they will abide by their declarations and assurances in the future? A good, measureable place to start for the Taliban to establish their bona fides would be an end to all suicide bombings in Afghanistan. Other confidence building measures would need to follow.

Another quote by Winston Churchill that relates to opening up direct talks with the Taliban is one of his most famous: "To jaw-jaw is always better than to war-war." It is axiomatic at this point that the conflict in Afghanistan will not end by military means alone. And the search for a political settlement must reach out to all parties -- but with eyes wide open.


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Playboy Hugh Hefner marries his 'runaway bride'

Los Angeles, Jan 10 : Hugh Hefner's celebrating the new year as a married man once again.

The 86-year-old Playboy magazine founder exchanged vows with his "runaway bride," Crystal Harris, at a private Playboy Mansion ceremony on New Year's Eve. Harris, a 26-year-old "Playmate of the Month" in 2009, broke off a previous engagement to Hefner just before they were to be married in 2011.

Playboy said that the couple celebrated at a New Year's Eve party at the mansion with guests that included comic Jon Lovitz, Gene Simmons of KISS and baseball star Evan Longoria.

The bride wore a strapless gown in soft pink, Hefner a black tux. Hefner's been married twice before but lived the single life between 1959 and 1989.

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New York County denies request for names of gun permit holders

New York, Jan 10 : Authorities in a suburban county north of New York City said they will refuse to release names of local gun permit holders to a newspaper that has been publishing the identities of thousands of license-holding residents.

Putnam County Clerk Dennis Sant said he would defy a request for information about pistol permit holders from the White Plains, New York-based Journal News, which has come under criticism for publishing thousands of such identities already.

"There is the rule of law, and there is right and wrong and the Journal News is clearly wrong," Sant said in a statement. "I could not live with myself if one Putnam pistol permit holder was put in harm's way, for the sole purpose of selling newspapers."

The Journal News first published a map listing thousands of pistol permit-holders in Westchester and Rockland counties, just north of New York City, on December 24.

The newspaper's editors said they sought the information after the December 14 shooting deaths of 26 children and adults at an elementary school in Newtown, Connecticut, which has sparked nationwide debate about gun control.

Angered, state gun-owner groups have called for an advertising boycott of the newspaper until it takes the map and identities off its website.

The newspaper, owned by the Gannett Co., sought the information under the state's Freedom of Information law. It says the identities are a matter of public record.

Putnam County officials had said they were compiling the names for the newspaper but said instead they would not deliver the information.

The county clerk said he has received hundreds of phone calls urging him not to give the information to the paper.

The county clerk, Putnam County Executive MaryEllen Odell and other elected officials were slated to appear at a news conference declaring their intentions. Also set to appear is state Sen. Greg Ball, a Patterson, New York, Republican who has said he will introduce legislation to keep permit information private except to prosecutors and police.

A similar bill that he introduced earlier as an assemblyman failed in the state Assembly.

The newspaper's editors were not available to comment on Putnam's announcement.

In the original article, the newspaper cited Robert Freeman, executive director of the state's Committee on Open Government, as saying he believed not only should the names and addresses be public, but also other information such as the types or numbers of guns someone owns.

Freeman told the newspaper that government records are presumed public unless their release is specifically barred by statute.

The newspaper's editor and publisher have said they expected the publication of the information to be controversial.

"But we felt sharing information about gun permits in our area was important in the aftermath of the Newtown shootings," said Janet Hasson, president and publisher of The Journal News Media Group.

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One of 9 deceased victims of Oregon bus crash identified so far

Portland, Jan 10 : Oregon authorities said they have managed to positively identify one of nine people killed after a charter bus skidded off an icy mountain highway and crashed down an embankment.

Identification of the victims has been complicated because some were foreign nationals, said Eugene Gray, forensic administrator for the Oregon State Medical Examiner's Office.

The Korean Consulate in Seattle, Wash. sent a team to work with investigators, since many of the 47 people on the bus were of Korean origin and citizens of Korea.

Some other passengers were Canadian and others were from the United States.

"We do positive identifications with fingerprints, dental records and DNA," Gray said. "None of this is available to us. We don't know how long it will take. We have to wait until we're provided the information."

The lone identification provided by authorities so far is that of Dale William Osborn, 57, from Spanaway, Washington, who was killed in the crash, officials said in a press release.

His wife, 65 year-old Darlene Sue Osborn, was being treated at St. Anthony Hospital, Pendleton.

The Oregon State Police said that one of the people killed in the crash may be a juvenile female. Of the nine people killed, four are male and five are female.

The tour bus veered off an icy highway, crashed through a guardrail and plunged 200 feet down an embankment, killing nine and injuring most of the other 38 people on board.

The injured were taken to 10 hospitals in three states and at least nine remained hospitalized.

Of the 26 people transported to St. Anthony Hospital in Pendleton, Oregon, five of the most severely injured were stabilized and transported to hospitals better equipped to treat them.

St. Anthony had five patients remaining, all in fair condition, said Larry Blanc, director of communications.

Four of the patients transferred to Oregon Health & Science University Hospital in Portland remained there, a spokeswoman said.

Oregon State Police and the National Transportation Safety Board are combing through evidence and interviewing passengers and the driver to try to determine the cause of the crash.

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California newspaper defies trend to shrink costs

Santa Ana, Jan 10  : New and expanded sections to cover business, automobiles and food. A nearly five-fold increase in community news pages and more investigative reporting. Even daily color comics.

It feels like a throwback to an earlier era at the Orange County Register, where a first-time newspaper owner is defying conventional wisdom by spending heavily to expand the printed edition and playing down digital formats.

Aaron Kushner added about 75 journalists and, with 25 more coming, will have expanded the newsroom by half since his investment group bought the nation's 20th-largest newspaper by circulation in July.

Changes also include thicker pages with triple the number of colors to produce razor-sharp photos and graphics. By the end of March, the newspaper will have 40 percent more space than under previous owners, Freedom Communications Inc.

Kushner, 39, believes people will pay for high-quality news. His bet is remarkable in an industry where newspapers have shrunk their way to profits for years, slashing costs while seeking clicks on often-free websites to attract online advertising.

As more newspapers begin charging for online access, Kushner's spending spree is drawing close attention.

"If he's successful, it's going to show the way for other papers to follow," said Walter E. Hussman Jr., publisher of the Arkansas Democrat-Gazette and an early advocate of charging readers for online access.

Seated behind his large, clutter-free desk near shelves stacked with newspapers, the former Stanford University gymnast said his lack of industry experience may be a plus because he hasn't been through the tough times in newspapering.

"So when we sit down and look at what's possible, our view of the world is different," Kushner said. "We're a little crazy in that we really do believe that we can grow this particular newspaper."

It's too early to know whether he's right. Kushner said advertising revenues have grown, though he won't say how much.

Average daily circulation rose 5.3 percent as of Sept. 30 from a year earlier to 285,088 on weekdays and 387,547 on Sundays, bucking an industry decline of 0.2 percent, according to the Alliance for Audited Media.

One key test will be when the Register begins charging for online access sometime before the end of March. He said readers will pay the same as the print edition — a contrast to publications that charge online subscribers substantially less.

"If you have a wonderful restaurant and it cost $10 to come in the front door, I've never understood why it should cost anything less to come through a side door," he said.

"The value of the journalism isn't any less. The reporter isn't paid any less. The photographer isn't paid any less."

Kushner, who has a master's degree in organizational analysis, founded a business in the 1990s that allowed people to change their addresses online and later owned and managed a greeting-card company for seven years.

In 2010, he started an investors group, 2100 Trust LLC, to scout for newspapers, flirting with The Boston Globe and later with MaineToday Media Inc., publisher of The Portland Press Herald.

Tom Bell, president of The Portland Newspaper Guild, said Kushner presented the union with 50 demands, including a longer work week and increases in employee health care contributions.

"We got off to such a bad start that it was hard to recover," said Bell, who is skeptical of that Kushner's print bet will succeed.

Kushner settled on Freedom and its 107-year-old flagship paper, the Register, for an undisclosed sum. The newspaper serves affluent, growing, well-educated and ethnically diverse communities near Los Angeles, bolstered by 24 community publications.

Kushner became Freedom's chief executive and the Register's publisher, working five days a week at the company's Santa Ana headquarters and flying cross-country to his wife and three children in the Boston area.

Many executives stayed put, including the top editor, Ken Brusic, who joined the Register in 1989.

The newsroom is nearing 300 employees, including about 40 year-round interns who are paid $10 an hour and provided housing. The new owners eliminated 401(k) matches at the non-union newspaper and have resisted pay raises.

Like other newspapers, the Register experimented over the last decade as its circulation tumbled 40 percent and the newsroom shrank in half. A tabloid paper featuring snappier stories failed, as did a weekly entertainment publication.

Reporters got ever-rising numerical targets to generate Web traffic, with constant reminders of how they fared against peers. "It was more like a sales floor than a newsroom," columnist Frank Mickadeit wrote in a recent piece hailing the Register's "reawakening."

To focus more on the print edition, the Register slashed the number of blogs from around 40 to less than a dozen. It scrapped an iPad application for news, traffic and weather.

The new owners have introduced a daily page for coverage of a major development, began sending a reporter and photographer to every one of the region's 50 high school football games on Fridays and doubled editorial pages.

Reporters have been encouraged to dig deeper and expand sources. "It's a new experience for (a publisher) to say, 'Are you sure you have enough investigative reporters? I think you ought to hire more,'" Brusic said.

The Register's editorial page — once a strong libertarian voice — didn't endorse for president in November. Kushner has contributed to Democrats such as Barack Obama and Joe Biden and moderate Republicans, including Sen. Susan Collins of Maine.

Kushner declined to discuss his political views and said they are separate from his work at the Register.

He is looking to buy more newspapers, telling Register staff last year that he had a list of 15 that fit his criteria. In an interview, he expressed interest in Tribune Co. newspapers, which include the Chicago Tribune, Los Angeles Times and Baltimore Sun.

Some readers and employees question how much the new owners will stomach if growth stalls. Kushner insisted he is committed, saying the Register has a strong balance sheet and doesn't answer to shareholders seeking quick returns.

"If you don't have a clear tangible way to grow revenue you only have one alternative and that's to cut costs," he said. "That path may well work. That's not the path that we're on here."

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Ten states raise minimum wage, rates up 10 to 35 cents/hour

Phoenix, Jan 10 : Ten states kicked off the new year with a minimum wage rise of between 10 and 35 cents, modestly boosting the incomes of nearly 1 million low-paid workers.

The rises went into effect in Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont and Washington.

The increase will put an extra $190 to $510 per year into the pocket of the average minimum-wage worker, according to a study by the non-partisan National Employment Law Project, released last month.

Rhode Island's minimum wage hike followed a law signed by the state's independent governor, Lincoln Chafee, in June. The other states hiked their minimum wages in accordance with state laws requiring annual adjustments to keep pace with inflation, the study said.

"For a low-wage worker, these increases are a vital protection against rising costs. In states without indexing, inflation slowly erodes the value of minimum wage workers' pay," said David Cooper, an analyst with the nonpartisan Economic Policy Institute.

The increases ranged from 10 cents an hour in Missouri - where the minimum wage is $7.35 an hour as of January 1 - to 35 cents in Rhode Island, where the new minimum wage increased to $7.75.

The increase will boost pay for 995,000 low-paid workers. Around 855,000 workers are directly affected as the new rates exceed their previous hourly pay. Another 140,000 workers are set to receive an indirect raise as pay scales are adjusted upward to reflect the new minimum, according to the Institute.

As of January 1, 19 states plus the District of Columbia have minimum wage rates above the federal level of $7.25 per hour, which translates to just over $15,000 per year for a full-time minimum wage earner, the report said.

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Woman stumbles, falls on NYC subway tracks, dies

New York, Jan 10  : New York City police say a young woman stumbling around on a Manhattan subway platform not far from Times Square fell onto the tracks and was killed by a train.

The accident happened at around 5 a.m. on New Year's Day at the No. 2 line station on 34th Street and Seventh Avenue. That's one stop from where revelers gather in Times Square to see the ball drop.

Police say the victim was in her 20s. Her name wasn't immediately released.

Subway deaths are common in the city. Last year, according to a report in the Daily News, there was about a fatality a week.

But track deaths have been getting extra scrutiny in recent weeks after two men were shoved to their deaths in December.

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Wall Street ends 2012 riding high on "cliff" deal optimism

New York, Jan 10 : U.S. stocks closed out 2012 with their strongest day in more than a month, putting the S&P 500 up 13.4 percent for the year, as lawmakers in Washington closed in on a resolution to the "fiscal cliff" negotiations.

The S&P 500's gain for the year marks its best performance since 2009, as stocks navigated through debt crises in Europe and the United States that dominated the headlines. Still, with numerous issues involving budget talks unresolved, markets could still be open to a shock should the deal break down unexpectedly.

Fittingly, in the last session of the year, stocks bounced back and forth on the headlines out of Washington, as both President Barack Obama and Republican Senate leader Mitch McConnell issued statements indicating a deal to avert the cliff was close.

"The worst news could have been the president coming out and saying, 'We don't have a deal and we've giving up,' and he didn't say that," said Ron Florance, managing director of investment strategy for Wells Fargo Private Bank, based in Scottsdale, Arizona.

"My personal skepticism, I don't trust anything out of Washington until it is signed, sealed and delivered, and it is not signed, sealed and delivered."

While a deal on the cliff is not yet official, investors may be ready to take on more risk next year in hopes of a greater reward.

McConnell said an agreement had been reached with Democrats on all of the tax issues in the potential deal, removing a large hurdle in the talks. An agreement is needed in order to avert a combination of tax hikes and spending cuts that many believe could push the U.S. economy into recession.

A source familiar with the matter said an emerging deal, if adopted by Congress and President Barack Obama, would raise $600 billion in revenue over the next 10 years by increasing tax rates for individuals making more than $400,000 and households earning above $450,000 annually.

Despite the uncertainty, the market encountered only occasional bouts of volatility this year. For the first time since 2006, the CBOE Volatility Index or VIX (^VIX), the market's favored indicator of anxiety, did not surpass the 30 level, a threshold that usually signals heightened worry among investors.

"Given all the threats in 2012, the VIX was relatively tranquil," said Bill Luby, the author of the VIX and More blog in San Francisco, citing the crises in Spain and Greece, along with constant intervention from the Federal Reserve.

The Dow Jones industrial average (^DJI) gained 166.03 points, or 1.28 percent, to end at 13,104.14. The Standard & Poor's 500 Index (^GSPC) gained 23.76 points, or 1.69 percent, to finish at 1,426.19. The Nasdaq Composite Index (^IXIC) gained 59.20 points, or 2.00 percent, to close at 3,019.51.

The gains enabled the S&P 500 to snap a five-day losing streak, its longest skid since September.

The S&P 500 closed out 2012 with a 13.4 percent gain for the year, compared with a flat performance in 2011. The Dow rose 7.3 percent in 2012 and the Nasdaq climbed 15.9 percent.

Financials (REU:^GSPFI) were the strongest of the S&P's 10 industry sectors this year, gaining more than 26 percent, led by Bank of America (BAC), which more than doubled in 2012, and was the best performer of the Dow industrials.

Of the S&P's 10 sectors, only defensively oriented utilities (.GSPU) ended the year lower, falling 2.9 percent.

Gains in Apple Inc (AAPL), the most valuable U.S. company, helped lift the Nasdaq. The stock rose 4.4 percent to $532.17, lifting the S&P information technology sector index (REU:^GSPTI) up 2.2 percent. For the year, Apple rose 31.4 percent, ending with a market value of about $501.4 billion.

Each of the Dow's 30 components finished the session in positive territory, led by a 3.2 percent climb in Caterpillar Inc (CAT.N) to $89.58.

Volume was modest, with about 6.06 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, slightly below the daily average of 6.42 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of 6 to 1, while on the Nasdaq, four stocks rose for every one that fell.

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Insight: How Colombian drug traffickers used HSBC to launder money

New York, Jan 10 : When several Colombian men were indicted in January 2010 on money-laundering charges, the case in Brooklyn federal court drew little attention.

It looked like a bust of another nexus of drug traffickers and money launderers, with mainly small-time operatives paying the price for their crimes.

One of the men was Julio Chaparro, a 48-year-old father of four who owned three factories that made children's clothing in Colombia.

But to U.S. authorities the case was anything but ordinary. Chaparro, prosecutors alleged, helped run a money-laundering ring for drug traffickers that took advantage of lax controls at UK-based international banking group HSBC Holdings Plc. It was one of the most important leads for U.S. investigators pursuing a case against the bank that eventually led to a $1.9 billion settlement on December 11.

Chaparro was "basically putting the orchestra together" and investigators saw "him as a major player in terms of cleaning a lot of money," said James Hayes, special agent in charge of Homeland Security Investigations at U.S. Immigration and Customs Enforcement in New York. Known as ICE, the agency and its task force led the probe.

The Colombian's lawyer, Ephraim Savitt, said Chaparro was a middleman in the operation, but disputed the extent of his client's role, saying he was the "page turner of sheet music for the conductor."

Chaparro, who was arrested in Colombia in 2010 and extradited to the United States in 2011, pleaded guilty to a money-laundering conspiracy count in May and is awaiting sentencing in 2013.

Much about the trail that drug traffickers used to move U.S. dollars - the proceeds from drug sales - through HSBC and other banks remains unclear. By design, the process is layered to evade detection.

But a review of confidential investigative records that originate from two U.S. Attorney office probes and federal court filings in New York and California, as well as interviews with senior law-enforcement officials, shows how investigators tracing the activities of people who allegedly worked with Chaparro were able to expose large-scale money laundering at one of the world's biggest banks.

The federal law-enforcement task force - named after El Dorado, the mythical city of gold in South America - used wire taps, email and computer searches, information from at least one inside source, and old-fashioned surveillance, to piece together the ring's operations.

Drug cartels sold narcotics in the United States and routed the cash to Mexico, often using couriers to smuggle it across the border. That cash would then be put into bank accounts at HSBC's Mexico unit, where large deposits could be made without arousing suspicion, according to U.S. Department of Justice documents.

In one filing, U.S. prosecutors said, Chaparro and others allegedly utilized accounts at HSBC Mexico to deposit "drug dollars and then wire those funds to ... businesses located in the United States and elsewhere. The funds were then used to purchase consumer goods, which were exported to South America and resold to generate ‘clean' cash."

In a typical transaction, a middleman in a drug cartel would offer to deliver consumer goods, such as computers or washing machines, to Colombian businesses on favorable terms. Another person in the United States would buy the goods from firms using funds from drug trafficking, and fulfill those orders.

Money launderers exploited the laxness of HSBC in policing shadowy money flows, the Department of Justice said earlier this month. Failures included not conducting due diligence on customers, not adequately monitoring wire transfers or cash shipments and not having enough employees to run anti-money laundering systems. U.S. Assistant Attorney General Lanny Breuer called the lapses "stunning failures of oversight."

The situation was so bad, according to the Department of Justice, that in 2008, the head of HSBC's Mexican operations was told by Mexican regulators that a local drug lord described the bank as "the place to launder money."

The Chaparro probe, led by ICE and the Justice Department, converged over the past two years with two other investigations - led by federal prosecutors and investigators in West Virginia and by the Manhattan district attorney - resulting in this month's settlement with HSBC.

HSBC and its employees avoided criminal indictments, as the bank agreed instead to a deferred-prosecution deal that forces it to strengthen controls and accept a compliance monitor.

Today, Chaparro sits in a federal detention center in Brooklyn, reading the Bible and awaiting sentencing, said Savitt, a former U.S. prosecutor in Brooklyn, who submitted a list of questions to Chaparro said.

"He is contrite, regretful and ashamed about his crimes," Savitt said. "He wants to serve his time and rejoin his family. He understands that a prison term could prevent that from happening for many years."

Under federal guidelines, he could face 15 to 18 years in prison.

The El Dorado federal task force, based in a building on the west side of Manhattan near Chelsea Piers, serves as an umbrella organization for some 250 law-enforcement officials from state, local and federal agencies.

One of the task-force supervisors is Lieutenant Frank DiGregorio, a former New York detective who spent years tracking the so-called Black Market Peso Exchange, which is used to convert dollars to Colombian pesos through trading in goods. DiGregorio along with two younger investigators - Graham Klein and Carmelo Lana - led the HSBC case.

The overall probe began in 2007 when investigators analyzed how courier companies ferried cash through airports in Miami and Houston, a person familiar with the case said. They ultimately tracked that to HSBC's operations in Mexico and then connected it to funds moving through New York.

A tipping point in the investigation came in 2009 when El Dorado agents arrested a man named Fernando Sanclemente. Two sources familiar with the case say Sanclemente was an operative in Chaparro's network.

Sanclemente, who was charged with allegedly conducting financial transactions tied to narcotics trafficking, is free on bail with a $200,000 bond, according to the latest court docket entry, which dates to January 2012. His lawyer, James Neville, declined to discuss the status of the case.

According to a criminal complaint filed against him by Lana, the El Dorado agent, on June 30, 2009, task force agents followed Sanclemente for more than two hours as he drove around Queens in New York to ferry cash from drug sales.

Sanclemente first met with a person for about "30 seconds" on one street corner, and left with a yellow plastic bag. Later that night, he drove to a Dunkin' Donuts near LaGuardia Airport, where a black livery cab pulled up and the driver handed him a black bag.

The El Dorado team followed Sanclemente to Laurel Hollow, New York, some 40 minutes away, where the investigators stopped and searched him, finding about $153,000 in the two bags. At Sanclemente's apartment, investigators said they found ledgers and documents consistent with money laundering.

With the arrest, investigators gained insight into Chaparro's alleged transactions. At one point, investigators set up undercover bank accounts where they were able to get Chaparro's network to wire proceeds that could be traced back to HSBC's Mexico operations, according to people familiar with the situation and a Department of Justice filing in the HSBC case.

Federal agents would ultimately home in on $500 million that had moved from HSBC Mexico to HSBC's operations in the United States, according to the confidential investigative records.

Between October 6, 2008 and April 13, 2009, Chaparro and others conducted money laundering transactions totaling $1.1 million tied to narcotics trafficking, the indictment against Chaparro alleged.


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South Korea's Hyundai, Kia expect slowest sales growth in 10 years

Seoul, Jan 10 : South Korea's biggest automakers Hyundai Motor Co and affiliate Kia Motors Corp are targeting a 4 percent increase in global sales this year to a combined 7.41 million vehicles, their slowest growth since 2003.

The duo, which together ranks fifth in global car sales, is bracing for more modest growth after years of expansion at breakneck speed. Group chairman Chung Mong-koo has slowed capacity building to focus on improving branding and profitability in the hopes of better competing with rivals that include Japan's Toyota Motor Corp.

Hyundai Motor and Kia will pursue brand innovation by raising the quality of our vehicles, Chung, the 74-year-old chairman of Hyundai Motor and Kia's parent group, said in his annual speech to employees.

In line with that strategy, Kia promoted chief designer and executive vice president Peter Schreyer - known for his design contributions to the iconic Audi TT - to president late last week.

Earlier in 2012, Hyundai Motor poached ex-BMW designer Christopher Chapman to head its U.S. design center.

"Chairman Chung said our maximum capacity is 8 million vehicles. No more than that. Instead, he said we need to move upmarket and raise margins," a former top Hyundai executive said.

Hyundai Motor plans to unveil a luxury-concept vehicle at the upcoming Detroit motor show, a spokesman said, without elaborating.

The auto maker targets sales of 4.66 million vehicles this year, while Kia has set a goal of 2.75 million, according to regulatory filings.

But investors are concerned that growth momentum will wane with Hyundai Motor and Kia's go-slow strategy and the firming South Korean won.

Hyundai and Kia's industry-leading margins are being threatened by the strengthening won, which reduces repatriated earnings and pricing power. The South Korean currency rose 7.6 percent against the dollar last year, its biggest percentage gain since 2009.

By contrast, the yen is softening, which could tip the competitive balance in favor of their Japanese rivals such as Honda Motor Co Ltd.

Reflecting those concerns, shares in Hyundai Motor rose 2.6 percent in 2012 while Kia shares slumped 15.3 percent, underperforming the wider market's 9.4 percent gain.

Hyundai and Kia were the worst performing stocks among the world's top five automakers last year.

A dearth of new models for Hyundai Motor and Kia this year may also erode sales growth, analysts say.

The next generation of Genesis, Hyundai Motor's premium sedan, may be unveiled only in late 2013.

Kia Motors plans to launch a new Soul compact car this year, a spokesman said, without elaborating on possible rollout plans for other models.

Hyundai Motor and Kia sold a combined 7.12 million vehicles in 2012, up 8 percent from the previous year and better than their original target of 7 million.

The duo drove up sales in China when their Japanese competitors were hit by a backlash in a dispute over islands in the East China Sea last year.

In the United States and Canada, Hyundai Motor and Kia's sales have not been greatly affected so far by their November 2 admission that they had overstated the fuel economy of more than 1 million cars.

Hyundai Motor, which started new plants in China and Brazil in 2012, is in a better position to increase sales this year than Kia, which did not add any capacity at all last year.

The companies plan to release their global sales results for December. Figures for the United States.

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Analysis: Economy would dodge bullet for now under fiscal deal

Washington, Jan 10 : A deal worked out by Senate leaders to avoid the "fiscal cliff" was far from any "grand bargain" of deficit reduction measures.

But if approved by the House of Representatives, it could help the country steer clear of recession, although enough austerity would remain in place to likely keep the economy growing at a lackluster pace.

The Senate approved a last-minute deal to scale back $600 billion in scheduled tax hikes and government spending cuts that economists widely agree would tip the economy into recession.

The deal would hike taxes permanently for household incomes over $450,000 a year, but keep existing lower rates in force for everyone else.

It would make permanent the alternative minimum tax "patch" that was set to expire, protecting middle-income Americans from being taxed as if they were rich.

Scheduled cuts in defense and non-defense spending were simply postponed for two months.

Economists said that if the emerging package were to become law, it would represent at least a temporary reprieve for the economy. "This keeps us out of recession for now," said Menzie Chinn, an economist at the University of Wisconsin-Madison.

The contours of the deal suggest that roughly one-third of the scheduled fiscal tightening could still take place, said Brett Ryan, an economist at Deutsche Bank in New York.

That is in line with what many financial firms on Wall Street and around the world have been expecting, suggesting forecasts for economic growth of around 1.9 percent for 2013 would likely hold.

Low tax rates enacted under then-President George W. Bush in 2001 and 2003 expired. If the House agrees with the Senate - and there remained considerable doubt on that score - the new rates would be extended retroactively.

Otherwise, together with other planned tax hikes, the average household would pay an estimated $3,500 more in taxes, according to the Tax Policy Center, a Washington think tank. Budget experts expect the economy would take a hit as families cut back on spending.

Provisions in the Senate bill would avoid scheduled cuts to jobless benefits and to payments to doctors under a federal health insurance program.

Like the consensus of economists from Wall Street and beyond, Deutsche Bank has been forecasting enough fiscal drag to hold back growth to roughly 1.9 percent in 2013. Ryan said the details of the deal appeared to support that forecast.

That would be much better than the 0.5 percent contraction predicted by the Congressional Budget Office if the entirety of the fiscal cliff took hold, but it would fall short of what is needed to quickly heal the labor market, which is still smarting from the 2007-09 recession.

"We continue to anticipate a significant economic slowdown at the start of the year in response to fiscal drag and a contentious fiscal debate," economists at Nomura said in a research note.

In particular, analysts say financial markets are likely to remain on tenterhooks until Congress raises the nation's $16.4 trillion debt ceiling, which the U.S. Treasury confirmed had been reached.

While the Bush tax cuts would be made permanent for many Americans under the budget deal, a two-year-long payroll tax holiday enacted to give the economy an extra boost would expire. The Tax Policy Center estimates this could push the average household tax bill up by about $700 next year.

The suspension of spending cuts sets up a smaller fiscal cliff later in the year which still could be enough to send the economy into recession, said Chinn.

He warned that ongoing worries about the possibility of recession could keep businesses from investing, which would hinder economic growth. "You retain the uncertainty," Chinn said.

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ArcelorMittal to sell $1.1 billion stake in Canada iron ore unit to POSCO group

Seoul, Jan 10 : ArcelorMittal, the world's biggest steelmaker, will sell a $1.1 billion stake in a Canadian iron ore mine operator to a consortium that includes South Korean steelmaker POSCO and Taiwan-listed China Steel Corp, China Steel said in a statement.

ArcelorMittal, formed in 2006 when India-born Lakshmi Mittal's steel business bought European peer Arcelor for $33 billion, is battling sluggish steel demand and is looking to offload assets to cut debt.

The sale of a 15 percent stake in Canada's Labrador Trough iron ore mining and infrastructure asset is part of that process.

POSCO, China Steel and ArcelorMittal Mines Canada will own Labrador Trough through a joint venture and will enter into long-term iron ore supply agreements, China Steel <2002.TW> said in the statement on its Website.

POSCO shares were up 2.6 percent, while China Steel rose 0.6 percent.

The transaction is subject to approval from the Taiwanese government, and is expected to close in two installments in the first and second quarters of 2013, the statement said.

The deal will give POSCO, the world's fourth-biggest steelmaker, access to iron ore and coal used to make steel, as it currently imports nearly all of its key raw materials. POSCO already owns a 12.5 percent stake in Australia's $10 billion Roy Hill project.

Earlier, a South Korean wire service Yonhap Infomax reported China Steel and POSCO would jointly contribute $540 million, while the remainder was expected to be paid by financial investors including the National Pension Service.

A POSCO spokeswoman confirmed a consortium involving POSCO signed a stock purchase agreement to acquire a stake in the iron ore mine operator, but declined to elaborate on details.

ArcelorMittal is one of Canada's top exporters of iron ore to steel markets around the world and its operations account for about 40 percent of Canada's iron ore output. It operates two large open-pit mines in the province of Quebec, where it also owns the Port-Cartier industrial complex that includes a pellet plant, storage areas and port facilities for shipping.

Last month, ArcelorMittal wrote down the value of its European business by $4.3 billion, underscoring gloom about prospects for the region's recession-hit manufacturers.

A source had previously said that POSCO was seeking to buy the stake with South Korea's National Pension Service and other investors.

Credit agency Fitch has cut ArcelorMittal's long-term issuer default rating to BB+, just below investment grade, due to the challenging outlook for Western European steel markets in 2013.

ArcelorMittal, which makes about 6-7 percent of the world's steel, says demand in Europe had fallen 29 percent since 2007 when the financial crisis started.

Goldman Sachs (GS.N) and RBC Capital Markets were advising ArcelorMittal on the deal, while Morgan Stanley (MS.N) is advising the POSCO consortium.


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Analysis: "Fiscal cliff" deal called a dud on deficit front

Washington, Jan 10 : In the controversy surrounding the "fiscal cliff" issue, it's easy to forget that the origin of the entire debate was a professed desire to reduce swollen federal deficits.

Whether the target was $4 trillion over 10 years, as proposed by the Bowles-Simpson deficit reduction commission, or in the $2 trillion range, as tossed around by House of Representatives Speaker John Boehner and President Barack Obama, the idea was to rein in total debt that now tops $16 trillion.

By those standards, the bill passed by the U.S. Senate early on New Year's Day to avoid the cliff's automatic steep tax hikes and across-the-board spending cuts, looks paltry indeed.

The legislation, which had yet to be passed by the House, would add nearly $4 trillion to federal deficits over a decade compared to the debt reduction envisioned in the extreme scenario of the cliff, according to the non-partisan Congressional Budget Office.

This is largely because it extends low income tax rates for nearly every American except the relative handful above the $400,000 threshold.

It's also because it put off for at least two months the automatic budget cuts that were part of the cliff and would have saved about $109 billion in federal spending on defense and non-defense programs alike.

The Senate bill, which ultimately came down to a fight about tax equity rather than federal spending, did to deficit reduction what Obama and congressional leaders always promise to resist: It "kicked the can down the road" to a later date.

In explaining the measure to the news media, the White House, which helped broker it, gave no particular figure for how much it would bring down the deficit, stating only that, somehow, "with a strengthening economy," it would.

Whether it ultimately succeeds will depend in part on what happens to the now-delayed "automatic" spending cuts, including whether Obama follows through on reductions in outlays.

The Senate bill also sets up what is likely to be an even more heated fight in late February when the Treasury Department must come to Congress to seek an increase in the government's borrowing limit.

That will bring everything full circle to where the cliff originated during a struggle between Obama and Republicans over raising the federal debt ceiling above $14.5 trillion.

That struggle ended in August, 2011 with a bipartisan deal designed to scare Congress into legislating significant long-term cuts in federal spending.

The idea was that by setting a strict deadline of January 2, 2013 and dire consequences in the form of draconian spending cuts for failing to meet it, the White House and Congress would be forced into action.

Republican Representative Paul Ryan, a self-described deficit hawk who served as the Republican vice-presidential candidate, declared the moment a "huge cultural change."

Coincidentally, low tax rates that originated during the administration of President George W. Bush were also set to expire on December 31, making the prospect of inaction so threatening that the Congressional Budget Office determined that failure to intervene could cause a new recession.

But the controversy over taxes, coming on the heels of a presidential campaign built around Obama's demand for middle-class tax justice, ultimately consumed the argument over the cliff, leaving deficit reduction as the forgotten issue.

Among those disappointed by the process was Alice Rivlin, a Brookings Institution scholar, former U.S. budget director and co-author of another widely discussed deficit reduction plan named for herself and former U.S. Senator Pete Domenici, a Republican from New Mexico.

"I'd been optimistic," Rivlin said in an interview. "I thought that we might get might get it done" and that Boehner and Obama "might get to a grand bargain."

Maya MacGuineas, a budget hawk who has led a group of corporate chieftains in a group called "Fix the Debt," was also unenthusiastic about the bill.

"This is one of the lowest common denominator deals," MacGuineas said. "I wish I had something nice to say, but not so much."

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From Uri to Pulwama, past probes miscarried

Srinagar, Jan 10 : Even as the occupant Jammu and Kashmir Government has ordered a magisterial inquiry into the firing on civilians allegedly by forces in Pulwama district last week, similar probes into the killings of civilians in 2012 proved to be damp squib as neither findings of the inquiries were made public nor appropriate action was taken on them.

Although the inquiry conducted into the killing of Altaf Ahmad Sood by Central Industrial Security Force (CISF) in Boniyar Uri on January 1, 2012, indicted the paramilitary force of resorting to “unwarranted and disproportionate” force, the accused men were not charged with murder.

“In my opinion, CISF personnel guarding the NHPC complex have violated the SOP and resorted to excessive use of force which was unwarranted and disproportionate to the action from the protesters. The situation that arose could have been avoided had the CISF personnel shown restraint. As a result of the action by the CISF personnel one innocent life was lost,” the inquiry officer has said in his report.

The CISF personnel had fired on the protesters when the latter were demanding adequate power supply in the area. Questions are being raised why the accused men were charged with lesser offence when the magisterial inquiry clearly established that firing was unwarranted.

Another inquiry ordered into the ‘killing’ of 20-year old Ashiq Hussain Rather by soldiers of 32 Rashtriya Rifles established that the youth was killed deliberately. The inquiry conducted by Sub-Divisional Magistrate Sopore was submitted to State Government last week, but no action has been taken against the accused nor has a charge-sheet been filed.

The report, according to sources, has negated the Army’s claim that the death was an accident.

In the fake encounter killing of Hilal Ahmad of Bandipora, the inquiry ordered by State Government is yet to be concluded. Six months after the inquiry was ordered into the killing that sparked off massive protests in the Valley, the inquiry officer told Greater Kashmir that it will take him 2-3 months more to conclude the probe.

While Army had initially claimed killing a militant in an encounter, it later turned out that the victim was an unarmed civilian. Despite this, shockingly, the police have given a clean chit to Army by blaming an Army source for the killing.

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‘IHK food shortage growing severe’

Srinagar, Jan 10 : With agriculture in held Jammu and Kashmir witnessing “gradual slump”, the occupied State is likely to face food insecurity in future if it does not take measures, an official report has warned.

 The state food grains production was not keeping pace with the requirement and the yield of principal crops—rice, wheat and maize—was not significantly improving, the report has revealed.

 This situation has been attributed to low productivity, low Seed Replacement Ratio (SRR), yield stagnation, poor irrigation facility as around 60 percent of the net area sown is rain-fed and small size of holding.

 JK’s annual food grain production is hovering around 18 lakh metric tons while the demand has crossed 24 lakh metric tons.
 The gap in production which was around two metric ton in 1980 has grown up to nine lakh metric tons and is met through imports.
 Warning food grain shortage in future the Economic Survey report revealed that state’s food shortage would grow as projected population would rise beyond 1.5 crore by 2020 with decadal growth rate of 23.71 percent.

 “The growth in the agriculture production is not satisfactory and government needs to make huge investments in the sector to meet the demands of the food grains,” the report said.

 An official said food grains imports in J&K were 5.03 lakh tonnes during 2002-03 which reached to 7.64 lakh tonnes during 2008-09 and 8.67 lakh tonnes during 2009-10. The imports jumped to over 9 lakh metric tonnes during 2010-11.

 To sustain continuous growth in the productivity, seed management plays a vital role, he explained.

 “Looking at the present situation the figures are highly unsatisfactorily. The national average of the seed replacement rate  has been above 25 percent while as JK is yet to cross 15 percent of the SRR in case of high yielding varieties of major crops,” he said.
 This is directly impacting the economy. The average percentage contribution of agriculture and allied sectors towards Gross State Domestic Product (GSDP) was around 20 percent in 2011-12, below than the corresponding share of 28.06 percent in 2004-05.
 The problem has aggravated by shrinking of the farming size due to continuous breakdown of the joint family system, growing urbanization, population explosion and conversion of agriculture land.

 According to the 8th census report (Revenue), 14.43 lakh operational holders were operating on 9.62 lakhs hectares of land in 2000-01.

 But the numbers have fallen to 13.78 lakhs operational holders operating on 9.23 lakhs hectares, a decrease of 1.50 percent in operational holders and 0.041 percent in operated area.
 Besides, the average holding size of 0.67 hectares has gone down from 0.76 hectares in 1995-96 (agriculture census).

 The net area sown is 728.56 thousands hectares. But as per the figures for 2010-11, around two lakh hectares of land, 12.09 percent, has been put to non-agriculture use in JK. Nearly 70 percent of the state population is directly or indirectly linked with agriculture for livelihood.

 As per official figures there has been no significant improvement in the net area irrigated over the past four decades.

 The area has grown from around 297 thousand hectares in 1974-75 to 313.99 thousand hectares in 2010-11, witnessing just 19 thousand hectares increase in 36 years.

 The crop yield has not grown significantly too.

 The per hectare crop yield for 2010-11 regarding principal agriculture crops was around 19.42 quintals for rice, 17.12 quintals for maize, and 15.35 quintals for wheat.

The corresponding figures were 18.97 quintals, 15.11 quintals and 6.45 quintals for rice maize and wheat in 1964-65 and 17.02 quintals 15.92 quintals and 5.29 quintals in 2000-01.

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They received bullets while taking brother to hospital

Srinagar, Jan 10: The bullet pierced through 23-year-old Ashiq’s abdomen, hit his cousin Showkat in the arm and then landed straight into his brother Jehangir’s shoulder —the bullet is still there.

Jehangir is admitted in Bone and Joints Hospital while his brother Aashiq is undergoing treatment at SMHS Hospital here.

Jehangir Ahmad Mir, 26, was standing outside his home at Nownagri, Pulwama, when he was allegedly fired upon by a soldier in his arm. The burly young man fell unconscious. There were two more youths who received injuries. And when Jehangir’s family heard about the incident, they tried to rush him to the Pulwama hospital in a sumo car. But it was not to be.

“I was standing outside home at a medical shop; there were three more people. We had heard there was something wrong at Bubgam (Chandgam). But our village was quite normal. Then all of a sudden bullets hit us,” Jehangir said, in a low tone. He can barely speak.  He has a bullet still in his shoulder. His torso is motionless. He feels suffocated to talk.

Jehangir’s relatives said a person came out of the army ambulance and fired indiscriminately on Jehangir and others at their native village in Nownagri. “There were already several people injured in Chandgam, where the encounter between Army and militants had already ended. The soldiers entered our village and resorted to unprovoked firing, injuring several of our family members,” a close relative of Jehangir said.

They said when they drove Jehangir and other two people in a Sumo for treatment to main town Pulwama, more bullets were waiting for them. This was the moment when a single bullet ripped trough many a souls at Pulwama Chowk.

“When we drove almost seven kilometers from Nownagri, soldiers travelling in an army ambulance showered bullets on the Sumo,” Jehangir’s brother Ashiq alleged.

He said first the army ambulance did not let them pass through the road and when the Sumo overtook, they were answered with bullets. “The personnel punctured the tyres of the sumo and then showered bullets, in which Jehangir received two more bullets, while I and my two cousins, Showkat and Gowhar were also injured in the firing. My sister barely escaped,” he added.
Gowhar and Showkat were also admitted in SMHS and B&J hospitals but have been now discharged.

At SKIMS, Soura, a few critically injured are admitted in Intensive Care Unit (ICU). Hospital authorities did not allow this reporter to enter the unit.

At SMHS and B&J hospitals, Jehangir’s relatives are poignant.  He has already undergone two surgeries. Medicos have advised that the bullet in his shoulder would only be removed when rest of the wounds heal.

Around a dozen civilians were injured in separate firing incidents at two different locations in Pulwama after security forces allegedly resorted to indiscriminate firing on the protesters.

The first incident of firing took place in Bubgam (Chandgam) village, where an encounter between militants and forces had taken place on December 28, while the second firing incident took place at main Chowk Pulwama on the same day when protests broke out in the area while the injured were being shifted to the District Hospital there.

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More evidence that malaria drug could help combat cancer

Islamabad, Jan 10 : Scientists investigating the cancer-fighting properties of artesunate -- a drug commonly used to treat malaria -- have found early evidence that combining it with an existing cancer drug has the potential to make each drug more effective than when used alone.

They also found that regular treatment breaks could improve success levels.

The findings, recently published in the International Journal of Cancer, are the result of tests on human cancer cells studied outside the body (in vitro studies) by Dr Wai Liu and Professor Angus Dalgleish at St George's, University of London.

Artesunate is well-known for combating malaria by reducing the amount of malaria-infected cells in the body that cause the disease -- and a number of scientific studies have already found that it may have the same effect on cancerous cells, consequently reducing the size of the cancer. This latest study adds further evidence to this theory. It also suggests that, in addition to actively killing infected cells to reduce the size of the cancer, artesunate may have the ability to prevent the disease from developing further by stunting the growth of the individual cancerous cells that cause the disease. They found that which effect it takes to combat the disease varies depending on the type of cancer.

The researchers analysed how four different types of human cancer cells -- two of which represented cancer of the colon, and the others breast and lung -- reacted to artesunate when it was used both alone and in combination with other anti-cancer drugs.

They found that artesunate prevented the cancer from growing in all four types of cell lines tested, in addition to reducing the size of the cancer in those cell lines derived from breast and lung cancer.

The researchers then combined artesunate with other common anti-cancer drugs in an attempt to boost activity, and this showed favourable responses with a drug called lenalidomide. When used together, these two drugs increased the effectiveness of the treatment in all four types of cancer cells tested, and had the largest effect on the lung cancer cells. When used separately, artesunate reduced the amount of lung cancer cells, or the size of the cancer, by 20 per cent, whilst lenalidomide reduced its size by 10 per cent. However, by using the two together, at the same concentrations, the cancer was reduced by around 60 per cent.

Dr Liu says: "We combined our lead drug called lenalidomide with the widely available drug artesunate, and showed that the overall activity of the drugs was boosted to a point that was greater than the sum of the two individual drugs, indicating that the two drugs have a cooperative relationship."

The research also indicates that artesunate could be made more effective at reducing the size of the cancer if used in shorter bursts, separated by drug-free periods. The researchers showed that with this treatment pattern, the cancer's size was reduced where artesunate had previously only been preventing the cancer from growing. The introduction of drug-free periods was also shown to further reduce the size of the cancerous mass where it was already being reduced without the drug-free periods. For example, in the breast cancer cell lines, a continuous exposure to artesunate achieved just a 10 per cent reduction in the size of the cancer, but the reduction with drug-free period was increased to over 50 per cent.

Dr Liu says: "Whilst stunting cell growth is a useful effect, destroying the cells to reduce their numbers is the preferred effect. These two processes are actually linked together, to the extent that if a drug inhibits cell growth it will inadvertently inhibit the ability of the cells to be destroyed. We have shown that by using short bursts of artesunate, the cancer cells regain the ability to be destroyed."

He concludes that: "Whilst these studies are conducted on cells outside the body and reactions can vary in the human body, this research provides new insight into how artesunate interacts with cancer drugs and different treatment patterns to combat cancer, and provides a starting point from which studies can be based."

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First drug to treat fragile x?

Islamabad, Jan 10 : The first drug to treat the underlying disorder instead of the symptoms of Fragile X, the most common cause of inherited intellectual disability, shows some promise, according to a new study published in the Science Translational Medicine.

Researchers from Rush University Medical Center helped design the study and are now participating in the larger follow-up clinical trial.


The data from the early trial of 30 Fragile X patients, found the drug, called AFQ056, made by Novartis Pharmaceuticals, helped improve symptoms in some patients. Patients who had the best response have a kind of "fingerprint" in their DNA that could act as a marker to determine who should get treatment.

"This is an exciting development. It is the first time we have a treatment targeted to the underlying disorder, as opposed to supportive treatment of the behavioral symptoms, in a developmental brain disorder causing intellectual disability. This drug could be a model for treatment of other disorders such as autism," said pediatric neurologist Dr. Elizabeth Berry-Kravis, a study author and director of the Fragile X Clinic and Research Program and the Fragile X-Associated Disorders Program at Rush.

The drug is designed to block the activity of mGluR5, a receptor protein on brain cells that is involved in most aspects of normal brain function, including regulation of the strength of brain connections, a key process required for learning and memory. Fragile X patients have a mutation in a single gene, known as Fragile X Mental Retardation-1 or FMR1. The mutation prevents FMR1 from making its protein, called FMRP, such that FMRP is missing in the brain. FMRP normally acts as a blocker or "brake" for brain cell pathways activated by mGluR5. When FMRP is missing, mGluR5 pathways are overactive resulting in abnormal connections in the brain and the behavioral and cognitive impairments associated with Fragile X.

The research team, led by Sebastien Jacquemont of Vaudois University in Switzerland in collaboration with Baltazar Gomez-Mancilla of Novartis, found no significant effects of treatment when the entire group of 30 patients was analyzed. However, in a subsequent analysis, seven patients who had a fully methylated gene, a gene that was fully shut down, presumably resulting in no FMR protein in the blood or brain, showed significant improvement in behavior, hyperactivity and inappropriate speech with the treatment compared to placebo.

"The treatment period in this pilot study was very short and longer treatment might have been needed to see improvement in the whole group of patients. Importantly, the drug was well-tolerated and there were no safety problems," said Berry-Kravis.

A larger study of the drug is now underway that will recruit 160 patients worldwide and test the effects of a longer period of treatment. Rush University Medical Center is one of the participating sites.

Fragile X affects 1 in 4000 males and 1 in 6000 females of all races and ethnic groups. It is the most common known single gene cause of autism or "autistic-like" behaviors. Symptoms also can include characteristic physical and behavioral features and delays in speech and language development. The impairment can range from learning disabilities to more severe cognitive and intellectual disabilities.

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Proteins need chaperones: Newly discovered processes in production of proteins described

Islamabad, Jan 10 : Young unmarried girls used to be accompanied by chaperones at social events. Their task was to prevent their charge from having undesirable romantic rendezvous with young boys.

The term "molecular chaperones" is used in cellular biology to refer to a group of proteins which prevent undesirable contact between other proteins. Such contact can be particularly dangerous during protein production, a process carried out by the ribosome in the cell.

The ribosome functions like a knitting spool: 20 different amino acids are threaded together like loops of thread in various sequences and amounts. The emerging amino acid chain disappears into a tunnel and does not come back out until it has reached a certain length.

A research group led by Freiburg biochemist Prof. Dr. Sabine Rospert studies how the chaperones at the end of the ribosomal tunnel influence the fate of newly synthesized proteins and how their functioning is coordinated in time and space. In 2005, the group discovered the chaperone ZRF1 at the end of the human ribosomal tunnel. ZRF1 exhibits structural characteristics which are otherwise typical only of proteins which influence the chromatin structure. Chromatin is a combination of DNA, histone, and other proteins in the nucleus of the cell. The DNA contains the information necessary for letting a ribosome know which amino acid chain it should produce. Gene segments of the DNA are translated into transcripts for this purpose, which then leave the nucleus in order to program the ribosomes for the synthesis of certain proteins.

Why does a chaperone sitting at the end of the ribosomal tunnel need to possess characteristics that can influence the chromatin structure in the nucleus? Thanks to the cooperation between Sabine Rospert's team in Freiburg and a group of researchers working under the biologist Prof. Dr. Luciano Di Croce at the Centre for Genomic Regulation in Barcelona, Spain, scientists are now a step closer to answering this question.

Di Croche investigates protein complexes which influence the chromatin structure and thus also the production of transcripts. Reversible modifications to histone proteins in the chromatin play a decisive role in these processes. The experiments conducted by the scientists have revealed that ZRF1 influences the modification of a histone protein, thus allowing the production of a specific group of transcripts for a limited period of time.

These results, published in the journal Nature, constitute an important step in the quest to understand the connection between the function of ZRF1 in the ribosome and in the chromatin. The discovery that this molecular chaperone has a dual function, both in the process of transcription and in the translation of the transcripts into proteins at a different place and time, is important initial evidence for the assumption that there is a link between the regulation of the two processes.

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